The Impact of Corporate Bond Issuance on Firms’ Performance: Evidence from Chinese Listed Companies
(2017) NEKP03 20171Department of Economics
- Abstract
- In recent years, Chinese corporate bond markets have grown at a remarkable rate. This thesis aims to examine the impact of corporate bond issuances on the momentum of stock prices by applying the event study. Our study comprises 212 corporate bond samples in the Chinese bond market from 2012 to 2016. Additionally, we investigate whether firm-specific and bond-specific characteristics correlate to the cumulative abnormal return by employing the cross-sectional regression. The result shows a positive cumulative abnormal return, which reveals the favourable signalling effect of bond issuance. Furthermore, we find that R&D expenses and size of issuance are positively related to the cumulative abnormal return. In contrary, insider ownerships,... (More)
- In recent years, Chinese corporate bond markets have grown at a remarkable rate. This thesis aims to examine the impact of corporate bond issuances on the momentum of stock prices by applying the event study. Our study comprises 212 corporate bond samples in the Chinese bond market from 2012 to 2016. Additionally, we investigate whether firm-specific and bond-specific characteristics correlate to the cumulative abnormal return by employing the cross-sectional regression. The result shows a positive cumulative abnormal return, which reveals the favourable signalling effect of bond issuance. Furthermore, we find that R&D expenses and size of issuance are positively related to the cumulative abnormal return. In contrary, insider ownerships, special provisions of bonds, as well as firm size affect the stock reaction negatively. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8912021
- author
- Xie, Jingliu LU and Cao, Yongjing LU
- supervisor
- organization
- course
- NEKP03 20171
- year
- 2017
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Corporate Bond, Cumulative Abnormal Return, Event Study, Determinants
- language
- English
- id
- 8912021
- date added to LUP
- 2017-06-13 14:45:43
- date last changed
- 2017-06-13 14:45:43
@misc{8912021, abstract = {{In recent years, Chinese corporate bond markets have grown at a remarkable rate. This thesis aims to examine the impact of corporate bond issuances on the momentum of stock prices by applying the event study. Our study comprises 212 corporate bond samples in the Chinese bond market from 2012 to 2016. Additionally, we investigate whether firm-specific and bond-specific characteristics correlate to the cumulative abnormal return by employing the cross-sectional regression. The result shows a positive cumulative abnormal return, which reveals the favourable signalling effect of bond issuance. Furthermore, we find that R&D expenses and size of issuance are positively related to the cumulative abnormal return. In contrary, insider ownerships, special provisions of bonds, as well as firm size affect the stock reaction negatively.}}, author = {{Xie, Jingliu and Cao, Yongjing}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Impact of Corporate Bond Issuance on Firms’ Performance: Evidence from Chinese Listed Companies}}, year = {{2017}}, }